Which Child Plan is Best in LIC?

When it comes to securing a financial future for your child, the Life Insurance Corporation of India (LIC) offers several child plans, each with its unique features and benefits. But which one truly stands out? To help you make an informed decision, we will delve into the top LIC child plans available, comparing their benefits, features, and suitability for different needs. Whether you're seeking a plan with higher returns, flexible premiums, or comprehensive coverage, this guide will provide you with all the necessary information to choose the best plan for your child's future.

Understanding LIC’s Child Plans

LIC’s child plans are specifically designed to ensure financial security for your child’s education and future needs. The primary options include:

1. LIC’s Jeevan Ankur
2. LIC’s Jeevan Tarun
3. LIC’s Jeevan Labh

Let’s explore each plan in detail.

LIC’s Jeevan Ankur

LIC’s Jeevan Ankur is a limited premium paying plan that provides financial protection against death throughout the life of the policyholder, with the benefit of premium waiver on the death of the parent. This plan is ideal for parents who wish to ensure a secure future for their child in case of unforeseen circumstances.

Key Features:

• Premium Payment Term: Limited, typically 5 years.
• Policy Term: Flexible, chosen based on the child’s age.
• Sum Assured: Flexible sum assured based on premium payment.
• Additional Benefits: Waiver of premium in case of the policyholder’s death.

Pros:

• Provides financial security with a premium waiver in case of the policyholder's death.
• Flexible policy terms and sum assured.
• Accumulated bonus benefits.

Cons:

• Premiums might be higher compared to other plans.
• Limited to the amount of coverage based on premium payment.

LIC’s Jeevan Tarun

LIC’s Jeevan Tarun is designed to provide financial support during the crucial years of the child’s education. This plan ensures that the child’s education and other needs are met, even if the parent is not around.

Key Features:

• Premium Payment Term: The policyholder pays premiums for a specified period.
• Policy Term: Flexible, usually until the child turns 24 years old.
• Sum Assured: Based on the chosen premium amount.
• Additional Benefits: Option to receive lump sum payouts at different stages of the child’s education.

Pros:

• Provides lump sum payments at specified intervals for educational needs.
• Flexible sum assured and premium payment terms.
• Coverage for various educational stages.

Cons:

• Payouts are scheduled, which might not always align with actual educational expenses.
• Policyholder needs to plan for premium payments over the years.

LIC’s Jeevan Labh

LIC’s Jeevan Labh is a combination plan that offers both savings and insurance. It is designed to provide financial protection and grow your investment through regular premiums.

Key Features:

• Premium Payment Term: Fixed, typically 9 years.
• Policy Term: Flexible, usually up to 25 years.
• Sum Assured: Based on chosen premium amount.
• Additional Benefits: Bonuses and financial protection throughout the policy term.

Pros:

• Offers a blend of insurance and savings.
• Guaranteed returns and bonus benefits.
• Suitable for long-term investment and coverage.

Cons:

• Premium payments are fixed and need to be planned accordingly.
• Returns might be lower compared to pure investment plans.

Choosing the Right Plan

To select the best LIC child plan, consider the following factors:

• Coverage Needs: Determine how much coverage is needed based on the child’s future requirements.
• Premium Affordability: Choose a plan that fits within your budget for premium payments.
• Policy Term: Select a plan with a policy term that aligns with the child’s educational milestones.
• Additional Benefits: Look for plans that offer additional benefits like premium waivers or lump sum payouts.

Comparing the Plans

Here’s a comparative overview of the plans to help you decide:

Feature	Jeevan Ankur	Jeevan Tarun	Jeevan Labh
Premium Payment Term	Limited	Specified	Fixed
Policy Term	Flexible	Flexible	Flexible
Sum Assured	Flexible	Based on premium	Based on premium
Additional Benefits	Premium waiver	Lump sum payouts	Bonuses, savings

Conclusion

Choosing the best child plan from LIC depends on your specific needs and financial goals. LIC’s Jeevan Ankur is ideal for those seeking financial security with a premium waiver. LIC’s Jeevan Tarun is suitable for structured educational support. LIC’s Jeevan Labh offers a balanced approach with insurance and savings benefits.

Carefully evaluate each plan’s features and benefits, and consider consulting a financial advisor to ensure you select the plan that best aligns with your financial strategy and goals for your child’s future.